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Hedge Fund One River Jumps Into Bitcoin ETF Race with "Carbon Neutral" Proposal

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Mon, 05/24/2021 - 13:22
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Alex Dovbnya
One River wants to get the SEC's blessing by turning to carbon neutrality
Hedge Fund One River Jumps Into Bitcoin ETF Race with "Carbon Neutral" Proposal
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Hedge fund management firm One River Asset Management has filed an application with the U.S. Securities and Exchange Commission to launch a Bitcoin exchange-traded fund with a green spin.

It is seeking to offset Bitcoin's carbon footprint by purchasing carbon credits that will equal the estimated CO2 emissions linked to the trust, a first for any proposed trust that offers direct exposure to Bitcoin.

According to the prospectus, One River will buy Ethereum-based MCO2 crypto tokens from environmental platform MOSS.Earth. Each token represents one ton of reduced CO2 emission:

Tokenized carbon credits are fungible and do not represent a claim on a specific underlying carbon credit issued to a specific carbon reduction project. The Trust will initially acquire MCO2 tokens from Moss from time to time at pre-negotiated prices in an amount sufficient to offset the estimated carbon footprint of the bitcoins held in the Trust's portfolio, with a view towards tracking the performance of the Index.

If approved, the shares of the ETF will trade on the New York Stock Exchange.

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The company hired former SEC chairman Jay Clayton as a cryptocurrency advisor back in March.

One River Digital, the hedge fund's crypto arm, is heavily invested in Bitcoin and Ethereum.

The U.S. SEC is yet to greenlight a single ETF proposal, with multiple giants of the likes of Fidelity and VanEck vying to be the first to launch the much-anticipated product.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.